Nairobi, Aug 26 - Kenyan agricultural producer Kakuzi posted on Wednesday a 72.9 million shillings ($954,800) pretax profit for the first half of 2009 from a loss of 27.8 million last year, thanks to higher tea prices.
Total sales for the firm, which also grows pineapples and trees and rears beef cattle, jumped to 694.9 million shillings from 460.8 million in the first six months of 2008. "During the first six months of the year tea and avocado operations made satisfactory contributions to profit. Turnover was up in relation to 2008 due to better tea prices and sale of early season ... avocado," the firm said in statement.
Kenya is the leading exporter of black tea, for which prices have risen this year after drought squeezed volumes.
Tea prices hit record levels last week on supply fears and buying ahead of the Muslim holy month of Ramadan but are unlikely to climb higher, according to Manuja Peiris, chief executive of the London-based International Tea Committee.
Kakuzi said performance in the second half was uncertain because of the global economic situation and insufficient rainfall in most parts of the country. "The pricing demand on our Hass Avocados sales during the second half of the year together with the present worldwide recession and current drought conditions in Kenya remain a concern and brings uncertainties to our business," it said.
Kakuzi shares were unchanged at 31 shillings from the last trading session but down from a year high of 40 shillings achieved in August last year.